A keynote address by Yewande Adewusi, Chief Operating Officer, Alitheia Capital at FinXposition 3.0, University of Ibadan.
Introduction
Good morning, distinguished students, faculty members, and future leaders of the finance world. It is an honor to stand before you today as the Chief Operating Officer of Alitheia Capital, a pioneering fund manager dedicated to investing in high-growth businesses across Africa. My journey in the digital financial services space has been one of resilience, innovation, and a relentless pursuit of impact. Today, I am excited to share insights on how you, as the next generation of finance professionals, can position yourselves to thrive in the digital economy.
The topic of today’s address is Positioning in the Digital Economy: Skills and Strategies to Pioneer Change. We will explore the intersection of entrepreneurship, technology, and finance, and how these elements converge to create transformative opportunities in Africa and beyond.
Every one of us in this room, uses one or more digital solutions everyday, and in almost every task.
In my over 20 years working across various industries and building businesses, I have seen first-hand how technology has transformed sectors. With the work we do at Alitheia Capital, we’ve seen how well digital transformation improves business resilience and drives sustainable growth for our portfolio companies. These companies cut across Fintech, agribusiness, manufacturing, healthcare, ID Management, nutrition, energy solutions and much more.
Let me put this into perspective. We are at a pivotal moment in Africa’s digital transformation journey. As of early 2024, the continent boasted over 103 million internet users, Nigeria alone accounting for approximately 45.5% of internet penetration. Nigeria stands as Africa’s largest ICT market, contributing 19.78% to the national GDP in the second quarter of 2024.
The Digital Economy: A Paradigm Shift
The digital economy is no longer a distant future—it is here, and it is reshaping industries, creating new markets, and redefining the way we live and work. In Africa, the digital economy is a $115 billion opportunity, driven by a young, tech-savvy population, increasing internet penetration, and a vibrant startup ecosystem.
But what does this mean for you as finance students? It means that the rules of the game are changing. Traditional finance roles are evolving, and new opportunities are emerging in areas like fintech, agritech, healthtech, and e-commerce. The question is: How do you position yourselves to not just participate in this economy, but to lead and pioneer change?
I want to take a pit stop to talk about a sector that has been transformed by digitalization ……
The Transformation of Financial Services in Nigeria and Africa
The digital economy has had a profound impact on the financial services sector in Nigeria and across Africa. Let’s take a closer look at how this transformation has unfolded:
Financial Inclusion: One of the most significant achievements of the digital economy in Africa is the expansion of financial inclusion. According to the EFInA, the percentage of adults with access to financial services in Nigeria has increased from 23% in 2011 to over 64% in 2023. This growth has been driven by mobile money platforms like Fairmoney and Paga in Nigeria I am proud to boast it is one of our portfolio companies, which have made it possible for millions of unbanked individuals to access financial services.
Down in Zambia, Lupiya, a portfolio company of our flagship fund which is Africa’s first and largest gender-lens fund, the Alitheia IDF Fund, has provided loans worth $15.5m to over 13,300 SMEs. Lupiya is on a mission to giving every Zambian access to financial opportunity.
Fintech Innovation: Nigeria has emerged as a hub for fintech innovation, with companies like Flutterwave, Paystack, and Interswitch leading the charge. These companies have revolutionized payments, lending, and wealth management, making financial services more accessible, affordable, and efficient. For example, Flutterwave’s payment infrastructure enables businesses to accept payments from customers anywhere in the world, while Paystack’s seamless payment solutions have empowered thousands of SMEs to grow their businesses.
Digital Banking: Traditional banks are also embracing digital transformation. In Nigeria, banks like GTBank and Access Bank have launched digital banking platforms that offer customers a wide range of services, from account opening to loan applications, all from the comfort of their smartphones.
Blockchain and Cryptocurrency: Blockchain technology and cryptocurrencies are gaining traction in Africa, offering new possibilities for secure and transparent financial transactions. For instance, Binance, one of the world’s largest cryptocurrency exchanges, has a significant presence in Nigeria, enabling users to buy, sell, and trade digital assets.
Regulatory Support: Governments and regulators are playing a crucial role in fostering innovation in the financial services sector. In Nigeria, the Central Bank’s Sandbox Framework allows fintech companies to test new products and services in a controlled environment, reducing the risk of regulatory non-compliance.
These developments are not just transforming the financial services sector; they are creating new opportunities for finance professionals to drive innovation and impact.
Entrepreneurship: The Engine of the Digital Economy
Entrepreneurship is the lifeblood of the digital economy. Across Africa, tech startups and SMEs are solving some of our most pressing challenges—from financial inclusion to healthcare access, education, and logistics. These businesses are not just creating value; they are transforming societies.
At Alitheia Capital, we have seen firsthand the power of entrepreneurship. One of our portfolio companies, *Complete farmer*, is a agritech startup that is digitizing a from supply to demand. Imagine a farmer growing their revenue from a few hundred dollars to a few thousand dollars a month through the power of digital technology. Another, *ReelFruit*, is a Nigerian-based agritech company revolutionizing the snack industry by processing locally sourced fruits. Using technology to reduce food waste. These companies are not just businesses; they are catalysts for change.
As finance professionals, your role is to support and enable these entrepreneurs. Whether through venture capital, private equity, or innovative financing models, you have the power to fuel their growth and amplify their impact.
The Role of Finance in the Digital Economy
Finance is the backbone of the digital economy. Without access to capital, even the most innovative ideas cannot take flight. This is where venture capital, private equity, and other forms of financing come into play.
1. Venture Capital (VC): VC is critical for early-stage startups. It provides the risk capital needed to turn ideas into viable businesses. For example, Alitheia Capital’s investment in MAX, a mobility startup, enabled the company to scale its ride-hailing and delivery services across Nigeria, creating jobs and improving urban transportation now transitioning from petrol/ diesel 2&3 wheelers to EV
2. Private Equity (PE): PE plays a vital role in scaling established businesses. By providing growth capital and strategic support, PE firms help businesses expand their operations, enter new markets, and achieve sustainability. Our in investment in Psaltry, the company was able to expand its cassava derivatives product range from flour to sorbitol, and glucose. We also supported their expansion into new markets USA and South Africa
3. Alternative Financing Models: Beyond VC and PE, innovative financing models like revenue-based financing, crowdfunding, and impact investing are gaining traction. These models are particularly relevant for SMEs, which often struggle to access traditional financing.
As finance professionals, you must understand these tools and how to deploy them effectively. You must also be adept at identifying high-potential opportunities and managing risk in a rapidly changing landscape.
Skills and Strategies to Pioneer Change
To thrive in the digital economy, you need more than technical finance skills. You need a mindset of innovation, adaptability, and lifelong learning. Here are some key skills and strategies to focus on:
1. Digital Literacy:
Whether it’s understanding the basics of data analytics, coding, cybersecurity or simply how digital products work, having a technical grounding is non-negotiable. This doesn’t mean that every finance professional must become a software engineer, but familiarity with digital tools, policies and platforms is essential. For instance, understanding payment gateways can significantly enhance your decision-making capabilities with regards to building digital payment products.
Imagine a future where you can quickly analyze vast datasets to identify market trends or use algorithmic models to forecast economic shifts. These are not futuristic scenarios—they are happening right now. And by equipping yourselves with these skills, you become not just participants but leaders in the digital economy.
Understand emerging technologies like blockchain, artificial intelligence, and data analytics. These technologies are transforming finance and creating new opportunities for value creation.
2. Entrepreneurial Thinking:
Even if you don’t start your own business, think like an entrepreneur. Nurture an entrepreneurial spirit. The digital economy thrives on innovation and disruption. This means being proactive in identifying new opportunities, taking calculated risks, and challenging the status quo. Whether you’re starting your own venture or driving change within an established organization, strategic thinking and willingness to experiment are key to pioneering new paths. So …..Be proactive, resourceful, and solution-oriented
3. Analytical and Critical Thinking
In an era characterized by information overload, the ability to critically analyze data and extract actionable insights is paramount. The digital world generates an enormous amount of data every day, and with it comes the challenge of discerning signal from noise. Developing strong analytical skills will enable you to interpret complex financial models, assess risks, and make decisions that are both informed and strategic.
4. Adaptability and Continuous Learning
The digital landscape is constantly changing. Technologies evolve with speed, and what is cutting-edge today might be outdated tomorrow. Therefore, a commitment to continuous learning is crucial. Embrace a mindset that views change as an opportunity rather than a threat. This could involve pursuing certifications, attending workshops, engaging with online communities that foster knowledge sharing and innovation or simply embracing the unknown
5. Global Perspective:
The digital economy is borderless. Stay informed about global trends and build networks that span across regions.
6. Impact Orientation:
The businesses that will thrive in the digital economy are those that create value for society. Align your career with opportunities that drive positive change.
7. Collaboration:
The challenges of the digital economy are too complex for any one person or organization to solve alone. Build partnerships and work across disciplines to achieve shared goals.
The Role of Finance Professionals in the Digital Economy
As finance professionals, you are not just gatekeepers of capital; you are enablers of innovation and growth. Your role is to:
– Identify and invest in high-potential businesses that are driving the digital economy.
– Develop innovative financing solutions that address the unique needs of startups and SMEs.
– Advocate for policies and frameworks that support the growth of the digital economy.
– Mentor and support entrepreneurs, helping them navigate the challenges of scaling their businesses.
At Alitheia Capital, we see ourselves as more than investors; we are partners to the entrepreneurs we work with. We provide not just capital, but also strategic guidance, mentorship, and access to networks. This is the kind of value you can bring as finance professionals.
Your Role in Shaping the Future
As students, you are not just the beneficiaries of these digital innovations—you are the innovators and leaders who will shape the future. Here are some final thoughts on how you can position yourselves to pioneer change:
– Invest in Yourself
The most important asset you have is your own potential. Dedicate time to learning new skills, exploring different fields, and embracing lifelong learning. Whether through formal education, online courses, or hands-on projects, every step you take to enhance your knowledge will pay dividends in the long run.
– Be Bold and Take Risks
Innovation often requires stepping outside your comfort zone. Don’t be afraid to experiment, fail, and learn from your experiences. A lot of the people we look up to today have had their own fair share of failure. Each failure is a lesson, a steppingstone on the path to success. Embrace challenges as opportunities to grow and refine your approach.
– Cultivate a Network of Mentors and Peers
No journey is made alone. Surround yourself with individuals who inspire you, challenge your thinking, and share your passion for innovation. Seek mentors who can provide guidance and insights based on their experiences and collaborate with peers who can help you think differently and push boundaries.
– Stay Curious and Informed
In a rapidly evolving digital landscape, staying informed is critical. Follow industry trends, read widely, and engage in conversations about the future of finance and technology. Your curiosity will not only keep you ahead of the curve but also fuel the innovative spirit necessary to drive meaningful change.
– Champion Ethical and Inclusive Innovation
As you harness digital technologies, remember that innovation should always serve the broader good. Champion initiatives that promote ethical practices, data privacy, and digital inclusion. Strive to create solutions that empower communities, reduce inequalities, and contribute to sustainable development.
Conclusion: A Call to Action
As I conclude, I want to leave you with this thought: The digital economy is not just about technology; it is about people. It is about how we harness innovation to create a better future for all.
To the students of the University of Ibadan Student Finance Club, you are standing at the intersection of opportunity and responsibility. The skills and strategies you develop today will determine your ability to pioneer change tomorrow.
I challenge you to think big, take risks, and embrace the possibilities of the digital economy. Whether you become investors, entrepreneurs, or policymakers, you have the power to shape the future of Africa and beyond.
Thank you for your attention, and I look forward to engaging with you during the Q&A session. Together, let us pioneer change and build a digital economy that works for everyone.